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DWP change timeline on compensating Universal Credit claimants who lost out on Severe Disability Prptection (SDP)

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The Department for Work and Pensions (DWP) has given an update following its announcement that tens of thousands of benefit claimants can expect to receive significant compensation by August 2025.

The payments are to be made to many of those who moved to universal credit (UC) from other benefits in recent years after moving home. Many lost ‘severe disability premiums’ (SDP) in the move to UC. The DWP were found not to be doing enough to ensure the income of such claimants was protected.

Around 57,000 people are set to receive payments averaging around £2,100 with the DWP originally saying it was hoping to make all payments by August of this year (2025).

However, Neil Couling, the department’s senior responsible owner for universal credit, has since said that only some can expect their payments by August 2025. Around 7,000 customers will not be paid within the original timescale as processing of these cases is "more complex". (Read full article on the Independent).

Disability organisations supported people in taking the DWP to court to challenge cuts to their Universal Credit after moving home. At successive hearings since 2018, judges ruled that disabled claimants who lost benefit, including disabled children, were discriminated against by the DWP, compared to similar claimants who didn’t have to move home. The DWP fought those rulings and obstructed paying “transitional protection”, eventually losing out at the Court of Appeal. Read the full story on winvisible.

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